BIT:SRG

Stock Analysis Report

Executive Summary

Snam S.p.A., together with its subsidiaries, engages in the implementation and integrated management of natural gas infrastructure in Europe.

Rewards

PE ratio (13.9x) is below the Italian market (18.3x)

Earnings are forecast to grow 3.1% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Snam's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

SRG

-2.6%

IT Gas Utilities

-1.6%

IT Market


1 Year Return

13.3%

SRG

6.8%

IT Gas Utilities

18.9%

IT Market

Return vs Industry: SRG exceeded the Italian Gas Utilities industry which returned 6.8% over the past year.

Return vs Market: SRG underperformed the Italian Market which returned 18.9% over the past year.


Shareholder returns

SRGIndustryMarket
7 Day-2.6%-2.6%-1.6%
30 Day-6.4%-4.4%-0.7%
90 Day-4.9%-1.6%4.6%
1 Year19.2%13.3%11.8%6.8%24.2%18.9%
3 Year40.7%20.1%47.0%27.7%27.1%8.1%
5 Year68.7%6.9%49.6%11.8%27.1%-17.7%

Price Volatility Vs. Market

How volatile is Snam's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Snam undervalued compared to its fair value and its price relative to the market?

13.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRG (€4.36) is trading above our estimate of fair value (€3.9)

Significantly Below Fair Value: SRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRG is good value based on its PE Ratio (13.9x) compared to the Gas Utilities industry average (15.7x).

PE vs Market: SRG is good value based on its PE Ratio (13.9x) compared to the Italian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SRG is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: SRG is overvalued based on its PB Ratio (2.3x) compared to the XE Gas Utilities industry average (1.4x).


Next Steps

Future Growth

How is Snam forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRG's forecast earnings growth (3.1% per year) is above the savings rate (1.2%).

Earnings vs Market: SRG's earnings (3.1% per year) are forecast to grow slower than the Italian market (8.7% per year).

High Growth Earnings: SRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: SRG's revenue (2.5% per year) is forecast to grow slower than the Italian market (3.1% per year).

High Growth Revenue: SRG's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRG's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Snam performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRG has high quality earnings.

Growing Profit Margin: SRG's current net profit margins (38.7%) are higher than last year (36.2%).


Past Earnings Growth Analysis

Earnings Trend: SRG's earnings have declined by -2.9% per year over the past 5 years.

Accelerating Growth: SRG's earnings growth over the past year (11.9%) exceeds its 5-year average (-2.9% per year).

Earnings vs Industry: SRG earnings growth over the past year (11.9%) underperformed the Gas Utilities industry 11.9%.


Return on Equity

High ROE: SRG's Return on Equity (16.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Snam's financial position?


Financial Position Analysis

Short Term Liabilities: SRG's short term assets (€4.9B) do not cover its short term liabilities (€6.2B).

Long Term Liabilities: SRG's short term assets (€4.9B) do not cover its long term liabilities (€11.8B).


Debt to Equity History and Analysis

Debt Level: SRG's debt to equity ratio (245%) is considered high.

Reducing Debt: SRG's debt to equity ratio has increased from 216.1% to 245% over the past 5 years.

Debt Coverage: SRG's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: SRG's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

Inventory Level: SRG has a high level of physical assets or inventory.

Debt Coverage by Assets: SRG's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Snam's current dividend yield, its reliability and sustainability?

5.19%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Snam before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.2%marketbottom25%2.0%markettop25%4.4%industryaverage5.4%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: SRG's dividend (5.19%) is higher than the bottom 25% of dividend payers in the Italian market (1.97%).

High Dividend: SRG's dividend (5.19%) is in the top 25% of dividend payers in the Italian market (4.38%)


Stability and Growth of Payments

Stable Dividend: SRG's dividend payments have been volatile in the past 10 years.

Growing Dividend: SRG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), SRG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRG's dividends in 3 years are forecast to be covered by earnings (77.9% payout ratio).


Next Steps

Management

What is the CEO of Snam's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Marco Alverà (44yo)

3.7yrs

Tenure

0

Mr. Marco Alverà serves as the Chief Executive Officer of Snam S.p.A. He served as Chairman at Snam Rete Gas S.p.A. until November 2017. Mr. Alverà served as Chief Industrial Assets Officer at Snam S.p.A.  ...


Management Age and Tenure

3.2yrs

Average Tenure

48.5yo

Average Age

Experienced Management: SRG's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Board: SRG's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Marco Alverà (44yo)

    CEO & Director

    • Tenure: 3.7yrs
  • Camilla Palladino (41yo)

    Executive Vice President of Corporate Strategy & Investor Relations

    • Tenure: 3.1yrs
  • Paolo Mosa (59yo)

    Chief Commercial

    • Tenure: 3.9yrs
  • Patrizia Rutigliano (51yo)

    Executive Vice President of Government Affairs

    • Tenure: 10.9yrs
  • Marco Reggiani

    General Counsel & Secretary

    • Tenure: 3.1yrs
  • Gaetano Mazzitelli (51yo)

    Executive Vice President of Regulatory Affairs

    • Tenure: 8yrs
  • Franco Pruzzi (55yo)

    Head of Administration & Finance

    • Tenure: 3.3yrs
  • Cosma Panzacchi (41yo)

    Executive Vice President for Digital Transformation & Technology

    • Tenure: 1.9yrs
  • Alessandra Pasini (46yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
  • Paola Boromei

    Executive Vice President of Human Resources & Organization

    • Tenure: 2.8yrs

Board Members

  • Marco Alverà (44yo)

    CEO & Director

    • Tenure: 3.7yrs
  • Francesco Gori (67yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: €70.00k
  • Antonio Paccioretti

    Chairman of Stogit

    • Tenure: 0yrs
  • Luca Fabbro (53yo)

    Independent Chairman of the Board

    • Tenure: 0.7yrs
  • Marco Galletti

    Chairman of Gnl Italia and Chief Executive Officer of Gnl Italia

    • Tenure: 0yrs
  • Yunpeng He (54yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: €37.00k
  • Alessandro Tonetti (42yo)

    Non-Executive Director

    • Tenure: 3.7yrs
  • Biagio Cafarelli

    Chairman of TEP Energy Solution

    • Tenure: 1.3yrs
  • Stefano Gnocchi (45yo)

    Chairman of Statutory Auditors

    • Tenure: 0.7yrs
  • Laura Cavatorta (55yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Snam S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Snam S.p.A.
  • Ticker: SRG
  • Exchange: BIT
  • Founded: 1941
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: €14.557b
  • Shares outstanding: 3.30b
  • Website: https://www.snam.it

Number of Employees


Location

  • Snam S.p.A.
  • Piazza Santa Barbara, 7
  • San Donato Milanese
  • Milan
  • 20097
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNMR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2001
SRGBIT (Borsa Italiana)YesOrdinary SharesITEURDec 2001
0NQPLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2001
SNMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2001
SRGMBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2001
SRGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 2001
SRG NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNDec 2001
SNMR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Snam S.p.A., together with its subsidiaries, engages in the implementation and integrated management of natural gas infrastructure in Europe. It operates through Natural Gas Transportation, Regasification  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 20:48
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.